A project manager is leading a virtual team spread across four time zones. Team members report feeling disconnected and isolated, and velocity has dropped. Which action is MOST appropriate to address this?

Mandate that all team members work the same core hours regardless of their local time.

Establish a 'virtual water cooler' channel and schedule informal social interaction time during overlapping hours.

Increase the frequency of status reporting to ensure everyone knows what others are doing.

Replace the distributed team members with local resources to enable colocation.